A carpenter has raised concerns about the declining state of the trade industry in Australia, pointing out that more businesses are opting for subcontractors due to their cost-effectiveness and convenience.

Josh Alcorn, the owner of a luxury cabin-building business in Wollongong, highlighted the issue of expensive apprenticeships in a recent video, stating that hiring apprentices has become financially burdensome.

According to Mr. Alcorn, the costs associated with apprentices, including annual leave, TAFE days, sick leave, public holidays, and other factors, make them as expensive as hiring subcontractors at $50 an hour.

He emphasized that from a financial standpoint, it makes more sense for business owners to hire subcontractors who require less supervision and come equipped with their own tools.

While Mr. Alcorn acknowledged the importance of training the next generation of tradies, he noted that the current cost of apprenticeships is discouraging many employers from taking on apprentices.

Data from the National Centre for Vocational Education Research revealed a decline in the number of apprentices in Australia, with trade numbers decreasing by 2.9% compared to the previous year.

During the federal election campaign, Prime Minister Anthony Albanese proposed a $627 million boost for the construction industry, aiming to support apprentices in various sectors, including carpentry and clean energy.

However, critics, such as the Independent Tertiary Education Council Australia, expressed concerns that the proposed funding may not be sufficient to address the broader needs of small businesses and other trade sectors.

Albanese's initiative was part of a larger plan to increase housing construction and alleviate housing shortages across the country.